Appointed administrators for Tullis Russell have today (Wednesday) said they have received no offers for the business.
Blair Nimmo and Tony Friar were appointed as Joint Administrators of the Markinch papermakers on April 27, and had set a closing date for offers for the business and assets for noon on Monday (May 18).
The level of interest shown in the business and the outcome from Monday’s closing date is disappointingBlair Nimmo, joint administrator
According to the administrators, around 200 companies were contacted with regards to the acquisition of the business.
However, no offers were received, meaning operations at the plant will continue to be wound down and more redundancies will be necessary.
Mr Nimmo, Joint Administrator and head of restructuring at KPMG in Scotland, said: “The level of interest shown in the business and the outcome from Monday’s closing date is disappointing.
“The business continues to face considerable economic challenges as a result of weakening global demand for printed materials, rising raw material costs and the strengthening of Sterling against the Euro.
“We will now be working with the company’s remaining employees to continue to wind down operations and focus on realising the company’s assets.
“Unfortunately that will mean further redundancies but we will continue to work with government agencies to offer support to those affected.”
On appointment of the Joint Administrators’, 325 of Tullis Russell’s 474 staff were made redundant. While some work has been ongoing to meet existing customer orders, a further 21 employees have been made redundant while operations are being wound down.